The future value of gas infrastructure in a climate-neutral Europe

Green Gas Initiative (GGI) and Net4Gas publish Frontier study on the future value of gas infrastructure in a climate-neutral Europe

Today, David Bothe, Associate Director of Frontier Economics, and the CEO’s of the Green Gas Initiative (GGI), a group of seven independent European gas infrastructure companies, and Net4Gas presented a study by Frontier Economics to European Union (EU) stakeholders in Brussels. The study focuses on the value of gas infrastructure as an enabler of cross-sectorial emission reductions and is underpinned by a system-wide cost analysis approach, with, with a specific regional focus on Belgium, the Czech Republic, Germany, Denmark, France, the Netherlands, Sweden and Switzerland.  

Frontier finds that the existing gas infrastructure is well positioned to help overcome the key challenges of decarbonisation like storage and transportation of energy. This is based on extensive existing gas storage capacity, which is sufficient to cover today’s gas demand in these countries by more than three months (compared to electricity storage with less than four hours), and a well-established Europe-wide gas transportation system, which exceeds the electricity transmission capacity by large.

Furthermore, the continued use of gas networks avoids substantial investments related to electrifying end-user appliances and expanding electricity networks. Calculations show that the eight countries analysed together can save €30-49 bn per year in 2050 through the continued use of gas networks.

Indeed, there are various renewable and low-carbon gases available which can be transported via the gas grid and contribute to decarbonisation efforts. These gases include biomethane, green hydrogen and synthetic (green) methane from electrolysis (power-to-gas) and blue hydrogen, i.e. hydrogen produced from natural gas with the related carbon output either stored or re-used.

Such gases could serve as reliable fuel for electricity generation and thus serve as back-up to balance intermittency of renewable supply, cover seasonal heating demand, contribute towards decarbonising the transport sector (particularly heavy-duty), and provide a low-carbon solution for high temperature heat and feedstock needs in industry.

Frontier Economics regularly advises clients on topics around energy and mobility transition.

For further information, please contact Miriam Rau at or give us a call at +49 (0) 221 337 131 00.

Value of Gas Infrastructure - Report